While stockmarkets remain in rollercoaster mode, ordinary investors may be wondering whether now is the right time to invest.

Despite share prices showing unprecendented volatility, eminent investors such as Anthony Bolton, the former Fidelity fund manager, announced last week he was dipping his toes back into the stockmarket.

While Bolton was at pains to say that he was not calling the bottom of the market, he said  there were areas of the market showing value.

Retail stockbroker, The Share Centre (www.share.com) agrees and has identifed 10 defensive shares worth looking at.

Nick Raynor, investment adviser at The Share Centre says: “There are opportunties for investors to pick up bargains where shares are currently undervalued.

“We are encouraging investors to fully research any investments they are considering and that they make the most of alert and monitoring tools such as stop loss limits and price targets.”

Raynor likes utility stocks such as National Grid, Pennon and Northumbrian, on the grounds that EDF’s recent purchase of British Energy may rekindle some corporate activity within the sector.
Utility stocks are also recession-proof, given that everyone needs water, gas and electricity, even if the economy goes into recession.

Another recommendation is Reckit Benckiser, the world’s largest cleaning products group, owning brands such as Vanish, Harpic and Airwick. The company’s strategy is simple and well-executed and people will still clean their homes, irrespective of economic conditions.

Rayner also likes Tesco’s defensive qualities as a food retailer which is expanding successfully in countries such as Russia, and whose shares are currently yielding 11.6 per cent.

Similarly, BAT, the cigarette manufacturer, has strong defensive qualities, a commitment to increase dividends and long term organic growth.

BT is favoured for its relative stability and the strong demand for broadband in the UK, where BT is the leading retail supplier, although Raynor recommends only drip feeding into this share.

Despite difficult trading conditions in the property market, Raynor is backing Land Securities. The company has decided to split its £15bn property portfolio into three separately quoted businesses as it looks to return value to investors.

Another favourite is Cobham, the aerospace company, which has strong trading links with the US, where defence budgets are growing at a higher rate than in the UK. A 12 per cent fall in the share price adds to its attraction.

STOP PRESS: The German and Spanish governments are considering following the Irish government and guaranteeing up to 100 per cent of retail savings deposits in their respective countries’ banks. The guarantee limit in the UK rises to £50,000 per authorised institution (not brand) from tomorrow 7 October.

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